Bombardier’s Learjet employees set to walk off job

Bombardier Inc.’s Learjet division is trying to cope not only with a weak market for smaller business jets but also a strike at its Wichita, Kan., facility.

Learjet employees voted in favour of strike action over the weekend and are set to walk off the job today.

The move follows rejection of Montreal-based Bombardier’s offer of a five-year contract that offers no raises in the first year and a 1-per-cent increase in subsequent years.

A major bone of contention is the proposal to hike health-insurance costs.

Bombardier says its offer is appropriate, given a tough business-jet market for small and medium-sized aircraft.

“We believe we have presented a fair and reasonable offer,” Bombardier Business Aircraft spokeswoman Danielle Boudreau said in an interview Monday.

“It is good for the business on a long-term basis and good for the employees as well.”

She said Bombardier is committed to the Learjet unit and recently made major investments in projects for three new models: the 70, 75 and 85.

“It’s a business we believe in,” she said, notwithstanding the short-term sales slump for smaller aircraft.

Bombardier’s negotiating team is prepared to return to the table for a renewed set of talks with the International Association of Machinists and Aerospace Workers union, said Ms. Boudreau.

About 825 workers are affected by the strike.

Ms. Boudreau said the company has a strike contingency plan to continue production.

“Our goal is to have the least disruption to production and to deliveries to our customers,” she said.

International Association of Machinists and Aerospace Workers union leaders insist Bombardier is in healthy enough shape and does not need major concessions from Learjet workers.

Global business-jet sales have been strengthening since the 2008 downturn, but they are more buoyant in the larger aircraft segment.

Learjet models seat between 7 and 10 passengers.

Bombardier’s larger, longer-range Challenger jets can accommodate up to 12 passengers, while the top-of-the-line Challenger line has room for between 17 and 19 passengers.

A sluggish U.S. economy, the European debt crisis and a slowdown in the Chinese economy are among the factors stalling the recovery for some categories of business jet.

Original Article
Source: the globe and mail
Author: BERTRAND MAROTTE